To: Anthony Carlisle

From: Pete Mitchell

Date: January 26, Year 1

RE: Audit of Goose, Inc.

Tony,

I am currently engaged in the audit of the accounts receivable balance of Goose, Incorporated. Here are the key points that I have discovered so far:

1. The total number of accounts is 2,500.
2. The average balance of each individual account is $150.
3. I want to be 95% confident that the recorded balance is not overstated by more than $60,000.
4. Currently, I do not believe any errors exist.

I will keep you updated as I continue this engagement. Please let me know if you have any questions or comments.

Sincerely,

Pete

To: Anthony Carlisle

From: Pete Mitchell

Date: February 1, Year 1

RE: Goose, Inc., Audit Task

Hey Tony,

Im going to need your help tying up the loose ends related to the Goose, Inc., audit. As mentioned in my previous email, the key points have all been laid out. Additionally, someone in the firm recently copied a reliability factors table from a textbook to use with some related calculations. I am going to ask you to perform those related calculations because I have been inundated with requests to complete other audit tasks. I really appreciate your help with these final few calculations.

Thank you,

Pete

Reliability Factors
Number of	Risk of Incorrect Acceptance
Errors	1%	5%	10%
0	4.61	3.00	2.31
1	6.64	4.75	3.89
2	8.41	6.30	5.33

Using the information in the exhibits, enter the appropriate amounts in the designated cells below. Use the Reliability Factors Table if necessary. Enter any percentages as a decimal (e.g., 10% = 0.1). For question 5., round the sample size to the nearest whole number.

a) Carrying amount of population:

b) risk of incorrect acceptance

c) reliability factor

d) sampling interval

e) sample size